Keryx Biopharmaceuticals (KERX) Stock Climbs on Analyst Upgrade

Keryx Bipharmaceuticals is having an incredible day in the market today, and for good reason. Early this morning, the company was the subject of a key analyst rating upgrade. This has caused investor excitement. Today, we’ll talk about the analyst upgrade, how the market reacted to the news, and what we can expect to see from KERX moving forward. So, let’s get right to it…

FBR Capital Raises Ratings On KERX

As mentioned above, KERX is having a solid day in the market today after a key analyst upgrade. FBR Capital announced early this morning that it had upgraded Keryx Biopharmaceuticals from a Market Perform rating to an Outperform rating. The analyst maintained the price target on the stock at $10.00. In the note announcing the upgrade, KERX analyst Christopher James had the following to say…

“We are upgrading KERX shares to Outperform from Market Perform, based on our valuation of the shares relative to current price levels, and maintaining our current price target of $10.00. On February 25, Keryx Biopharmaceuticals announced 4Q15 EPS of ($0.36), versus the Street’s estimate of ($0.25) and our estimate of ($0.27). The greater-than-expected loss was driven by interest expense related to the amortization of its convertible debt. Management hosted a conference call to discuss its financial results and provide an update of Auryxia (ferric citrate) commercial efforts and label expansion in pre-dialysis patients with iron deficiency anemia (IDA). We provide the following takeaways from the call: (1) We expect data from the Phase III study in IDA patients to read out in early 2Q16, with a potential regulatory filing in 3Q16; (2) prescription volume for Auryxia grew approximately 46% over the quarter, driven by growth in non-IMS channels; and (3) the European strategy for Fexeric (ferric citrate) will likely be executed through a series of regional partnerships as opposed to a pan-European partnership. We believe 2016 will be a year of meaningful Auryxia sales and remain focused on potential label expansion.”

How The Market Reacted To The News

As investors, we’ve learned that any time there is positive news released with regard to a publicly traded company, we can expect to see gains in the value of the stock associated with that company. The news today that FBR Capital has upgraded KERX is incredibly positive news, and is leading to strong gains in the value of the stock today. Currently (12:03), Keryx Biopharmaceuticals is trading at $4.29 per share after a gain of $0.65 per share or 17.93% thus far today.

What We Can Expect To See Moving Forward

Moving forward, I have a relatively bullish opinion of what we can expect to see from KERX. The reality is that while the company did produce a wider loss than expected in the previous quarter, they are moving in the right direction on several fronts. As mentioned by the analyst at FBR Capital, Fexeric is looking incredibly promising when it comes to commercialization in Europe. I am also incredibly excited to see what comes of Auryxia over the quarter given opinions by the analyst and statements made by the company. All in all, things are looking great for KERX.

What Do You Think?

Where do you think KERX is headed moving forward? Let us know your opinion in the comments below!

Joshua Rodriguez is the owner and founder of CNA Finance. He is also a partner here at Modest Money. His analysis has been featured on Investing.com, Yahoo! Finance, Google Finance, Google News, and many others. To connect with Joshua, follow him on Twitter @CNAFinance.

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Joshua Rodriguez is the owner and founder of CNA Finance.
He is also a partner here at Modest Money. His analysis has been featured on Investing.com, Yahoo! Finance, Google Finance, Google News, and many others.